They added that they believe the company’s jarring announcement poses a headline risk to the whole industry, “but we believe that the real problems are isolated to J.P. Morgan.”

As such, they recommended buying shares of banks that operate under less-complicated business models, such as Wells Fargo
WFC, -0.48%
U.S. Bancorp
USB, +0.33%
and PNC Financial Services Group
PNC, -0.50%

Graseck said that J.P. Morgan will probably face further losses as the trader’s hedge unwinds through year-end and that the announcement is disappointment.

But she concluded that the loss “is not big enough to push us off [an overweight rating on J.P. Morgan] in an increasingly choppy world.”

The loss has some broader negative implications, but the direct impact to the J.P. Morgan’s bottom line appears manageable, according to analysts at Goldman Sachs.

In a note to investors Friday, Goldman said it foresees 2012 earnings-per-share revisions as well as the potential for re-evaluating J.P. Morgan’s trading multiple. Still, the shares should get support from buybacks and a roughly 3% dividend yield.

“Longer term, we continue to recommend the shares as the core earnings power remains intact and the risk/reward balance is favorable at only 7.5 times 2013 earnings per share,” the analysts said.

Analysts at Bernstein Research pointed out that, while financially manageable for the firm, the losses are an embarrassment for Dimon, viewed by many observers as the savviest big-bank executive during the recent financial crises.

“J.P. Morgan’s trading loss is a big credibility hit to the company. While the financial impact looks manageable, the event could lead to greater regulatory scrutiny and increased investor skepticism about the predictability of J.P. Morgan’s financial results,” the analysts said.

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